Practice question
In an applicable overinsurance-by-double-insurance case, the insured receives more than the valuation under valued policies. The insured says the excess is a personal windfall unrelated to contribution. What does Section 96(d) require?
- The excess always becomes a tax refund.
- The excess must be held in trust for insurers according to their contribution rights.
- The insured must automatically become their director.
- The valuation doubles after payment.
- Every insurer loses all rights by paying anything.
Legal references
- Insurance Code as amended by RA10607, Sections26–48 and95–100: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
- Malayan Insurance v. Philippines First Insurance, GR184300, July11 2012, main decision: https://lawphil.net/judjuris/juri2012/jul2012/gr_184300_2012.html
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